One of the ways that banks help the communities they serve is by engaging in partnership lending to increase the capacity to lend to businesses and nonprofits. The following are some examples of partnership loans involving members of the Indiana Bankers Association.

Four dozen nonprofit organizations in Indiana received one of the Federal Home Loan Bank of Indianapolis’ Community Multiplier grants, totaling more than $3 million in awards statewide. The flexible grant program was designed to help member financial institutions support local community needs outside of the programs and products already offered by FHLBI. The program was so popular that all $5 million of available funding was claimed within weeks.

Each matching grant ranged from $25,000 to $125,000, all in support of nonprofit organizations working on affordable housing initiatives. Member financial institution had to commit a minimum 10% match to FHLBI funds.

IBA-member banks facilitated more than 60% of the winning grants by dollar amount, including:

• Community First Bank of Indiana, Kokomo
  8 recipients, $220,000 total
• First Farmers Bank & Trust Company, Converse
  2 recipients, $165,000 total
• First Federal Savings Bank, Evansville
  2 recipients, $55,000 total
• First Internet Bank, Fishers
  1 recipient, $145,000
• First Merchants Bank, Muncie
  1 recipient, $137,500
• First Savings Bank, Jeffersonville
  2 recipients, $110,000 total
• German American Bank, Jasper
  3 recipients, $220,000 total
• GBC Bank, Greenfield
  2 recipients, $165,000 total
• Lake City Bank, Warsaw
  1 recipient, $55,000
• Merchants Bank, Carmel
  3 recipients, $220,000 total
• The Napoleon State Bank
  3 recipients, $82,500 total
• The National Bank of Indianapolis
  3 recipients, $165,000 total
• Old National Bank, Evansville
  1 recipient, $110,000

Five IBA-member banks also partnered to provide the Indianapolis Neighborhood Housing Partnership with $10.765 million to support affordable housing strategies in Marion County. INHP is a certified Community Development Financial Institution dedicated to providing affordable housing and economic development in underserved Indianapolis neighborhoods. The financing from First Internet Bank, First Merchants Bank, Lake City Bank, Old National Bank and The National Bank of Indianapolis was made possible through FHLBI’s CDFI Rate Buydown Advance program.